Question 18

Dividends on cumulative preferred shares

must be paid each year.

must be paid before dividends may be paid on common shares.

accumulate over the life of the shares and are paid on retirement.

if in arrears, must be calculated like compound interest.

Question 19

The information in a statement of cash flows enables stakeholders to assess the

amounts, timing and certainty of future cash flows.

liquidity and solvency of an entity.

change in working capital during the period.

reason(s) for the difference between net income and cash flows from financing activities.

Question 20

The statement of cash flows is required to be included

for financial statements prepared under IFRS, but is optional under ASPE.

only for financial statements prepared under IFRS.

only for financial statements prepared under ASPE.

for both financial statements prepared under IFRS and under ASPE.

Question 22

Selected information fromHatian Corp.'s 2020accounting records is as follows:Hatianadheres to ASPE.

Proceeds from issuance of common shares...........$200,000Proceeds from issuance of bonds..........................600,000Cash dividends paid on common shares...............80,000Cash dividends paid on preferred shares.............30,000Purchase of a FV-NI investment............................60,000Sale of shares to officers and employeesnotincluded above................................................50,000

Based on the above information, the cash provided by (used in) financing activities for calendar 2020 is

$(110,000).

$740,000.

$80,000.

$90,000.

Question 23

Tampa Ltd.'s prepaid insurance balance was $20,000 at December 31, 2020 and $10,000 at December 31, 2019. Insurance expense was $8,000 for 2020 and $6,000 for 2019. How much cash paid for insurance would be reported in Tampa 2020 statement of cash flows prepared using the direct method?

$18,000

$12,000

$8,000

$22,000

Question 26

Which of the following alternative accounting methods is(are) allowed by ASPE and IFRS for reporting accounting changes?

prospective and retrospective

retrospective only

current and retrospective

current and prospective

Question 28

Accounting for a retrospective change requires

reissuing all prior financial statements affected by the change.

adjusting the ending balance of retained earnings for the current year.

reporting the "catch-up" adjustment on the current income statement.

adjusting the opening balance of each affected component of equity for the current year.

Question 29

On January 1, 2020, Miner Corp. changed its inventory costing from FIFO to average cost for financial statement and income tax purposes, to make their reporting as reliable and more relevant. The change resulted in a $600,000 increase in the beginning inventory at January 1, 2020. Assume a 30% income tax rate. The cumulative effect of this accounting change should be reported by Chickadee in its 2020

Income statement as a $600,000 cumulative effect of accounting change.

Retained earnings statement as a $420,000 addition to the beginning balance.

Income statement as $420,000 other comprehensive income.

Retained earnings statement as a $600,000 addition to the beginning balance.

Question 30

In calculating diluted earnings per share, dividends on non-convertible cumulative preferred shares should be

deducted from net income whether declared or not.

deducted from net income only if declared.

added back to net income whether declared or not.

ignored.

Question 31

Which of the following does NOT need be disclosed in a Summary of Significant Accounting Policies?

claims of shareholders

inventory valuation method(s)

revenue recognition method(s)

depreciation and amortization method(s)

Question 34

IFRS requires that all of the following information about each reportable segment must be provided EXCEPT

income tax expense or benefit.

total liabilities.

cost of goods sold.

interest revenue.

Question 35

Presented below are four segments that have been identified byMangoCorp.:

OperatingSegmentsTotal RevenueProfit (Loss)AssetsA$300,000$40,000$1,200,000B800,000(70,000)1,200,000C300,0006,000600,000D120,0008,000300,000

According to IFRS, which segments would be considered reportable segments?

Segments A, B, C, and D

Segments A and B

Segments A and D

Segments A, B, and C